Gasoline prices in the United States could fall below the $4 per gallon mark, Gas Buddy’s head of petroleum analysis, Patrick De Haan, said in a note on Monday.
Diesel will likely soon fall under $5 per gallon.
Gasoline prices have fallen for the eighth week in a row, according to Gas Buddy data.
“The national average is poised to fall back under $4 per gallon as early as today as we see the decline in gas prices enter its eighth straight week. By the end of the week, one hundred thousand stations will be at $3.99 or less,” De Haan said, adding that he has even seen some stations set their pricing below $2.99 per gallon.
Gasoline prices on Monday in the United States slipped to an average of $4.059 per gallon, according to AAA data. That’s 1 cent less than yesterday, 15.3 cents less than last week, and 66.2 cents lower than a month ago. While this is a dramatic drop over the last month, the average price is still 87 cents higher than it was a year ago.
Crude oil prices were trending up slightly on Monday, but have fallen considerably over the past week on market fears that we are heading into—or are already in—a recession.
Despite the fears that a looming recession and continued fed tightening could eat into demand for crude oil, the fundamentals haven’t changed over the course of the last week. Global refining capacity is shrinking, U.S. shale Q2 reports indicate that most companies do not have aggressive production plans for the coming year, and OPEC+ has issued a warning about its own lack of capacity by saying last week that “the severely limited availability of excess capacity necessitates utilizing it with great caution in response to severe supply disruptions”.
By Julianne Geiger for Oilprice.com
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